How to Write an Employment Contract for Restaurant Staff in Australia
Every time you hire someone for your restaurant, pub, cafe, or hotel, you need a properly drafted employment contract. Without one, you’re exposed to disputes over hours, pay, notice periods, and termination — and you’ll have no documentation to fall back on if things go wrong.
This guide walks you through exactly what to include in an employment contract for hospitality staff in Australia, with specific reference to the Hospitality Industry (General) Award MA000009.
Do You Legally Need a Written Contract?
Technically, employment can exist without a written contract in Australia. But here’s why that’s a terrible idea for hospitality:
- Without written terms, employees can dispute their agreed hours, duties, and pay rate
- You can’t enforce a probation period without it being in writing
- Notice period terms won’t apply unless documented
- Fair Work will ask for contracts during any investigation — not having one looks bad
What Must Be Included
Under the Fair Work Act and the Hospitality Award, your employment contract should include these essential elements:
- Employer details — business name, ABN, trading name, workplace address
- Employee details — full name, position title, start date
- Employment type — full-time, part-time, or casual (this affects almost everything else)
- Award classification — specific level under the Hospitality Award (e.g. Level 1 Food & Beverage Attendant Grade 2)
- Pay rate — base hourly rate, reference to the applicable award, pay frequency
- Hours of work — ordinary hours per week, days of the week, rostering arrangements
- Probation period — typically 3 or 6 months (must be in writing to be enforceable)
- Leave entitlements — annual leave, personal/carer’s leave, compassionate leave (for permanent employees)
- Superannuation — fund details and contribution rate (currently 11.5%)
- Notice of termination — required notice period for both parties
- Workplace policies — reference to any relevant policies the employee must comply with
Hospitality-Specific Clauses You Shouldn’t Miss
Generic contract templates often miss these hospitality-specific requirements:
Uniform & Grooming Standards
If you require a specific uniform, specify who provides it and whether the employee receives a laundry allowance under the Award. The current laundry allowance is $4.64 per shift where an employee is required to launder a special uniform.
RSA/RCG Requirements
If the role requires a Responsible Service of Alcohol (RSA) or Responsible Conduct of Gambling (RCG) certificate, state this as a condition of employment and clarify who covers the cost of obtaining and renewing these certifications.
Split Shifts
The Hospitality Award allows split shifts with specific rules. If your venue uses split shifts, include the terms in the contract and ensure compliance with minimum break and payment requirements.
Rostering & Availability
Specify the days and times the employee may be required to work, and the notice period for roster changes. The Award requires 7 days’ notice for roster changes (though this can be varied by mutual agreement).
Casual vs Permanent: Key Contract Differences
The biggest contract differences between casual and permanent employees:
- Casual: No guaranteed hours, 25% casual loading, no paid leave, can be terminated without notice, must include the Casual Employment Information Statement (CEIS)
- Part-time: Guaranteed minimum hours (must be specified in contract), paid leave entitlements, notice of termination required, regular pattern of work agreed in advance
- Full-time: 38 hours per week (or average of 38 over roster cycle), all leave entitlements, notice of termination, overtime rates apply beyond ordinary hours
Common Mistakes to Avoid
- Wrong classification level: Using “Level 1” for everyone when some roles clearly fall under higher levels (e.g. a Cook Grade 3 is Level 4)
- Paying below Award: The contract rate can never be lower than the applicable Award rate
- Missing the probation clause: Without it in writing, you can’t rely on a probation period
- No reference to the Award: The contract must reference the Hospitality Industry (General) Award
- Using a generic template: Contracts from other industries miss hospitality-specific provisions
Frequently Asked Questions
Do I legally need a written employment contract for restaurant staff?
While not strictly mandatory for all employees, the Fair Work Act requires certain terms in writing. In practice, not having a written contract exposes you to disputes and makes it nearly impossible to enforce terms like notice periods or probation. Every hospitality business should issue written contracts.
What must be included in a hospitality employment contract?
At minimum: employer and employee names, job title and Award classification level, employment type (full-time, part-time, or casual), start date, hours of work, pay rate and Award reference, leave entitlements, notice period, and workplace location. Hospitality-specific additions include uniform requirements, RSA/RCG conditions, and roster change notice periods.
Can I use a generic contract template for my restaurant?
Generic templates miss hospitality-specific requirements like Award classification, penalty rate references, split shift provisions, and RSA requirements. Use a template built for the Hospitality Industry (General) Award. Fitz HR’s free Contract Builder generates contracts tailored to the Hospitality Award in minutes.
What’s the difference between a casual and permanent contract?
Permanent employees have guaranteed hours, paid leave, and require notice of termination. Casual employees have no guaranteed hours, receive 25% casual loading instead of leave, and can be terminated without notice. After 12 months of regular work, casuals may request conversion to permanent.
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